UK businesses see 449% rise in AI spending with ChatGPT leading

New research unveiled by spend management fintech Soldo has revealed an astounding 449% increase in artificial intelligence (AI) spending by UK businesses in the first quarter of 2024 compared to the same period last year. The study underscores a significant 2.75-fold surge in AI adoption rates, with a noteworthy 63% of this investment being allocated to OpenAI's ChatGPT.

Soldo's Spring Spend Index, a quarterly analysis of expenditure habits across more than 18,000 organisations using Soldo, highlights a broader shift towards technology-driven productivity enhancements. AI investment has emerged as a crucial strategy for businesses striving to remain competitive in a rapidly changing economic and business environment. The data shows a general increase in business spending at the beginning of the year, rising by a healthy 8% year-on-year, propelled largely by technological investments aimed at alleviating the burden on overstretched employees.

The Index reports that while ChatGPT leads the AI tool market with a 63% share of the overall AI expenditure, Midjourney is the frontrunner in image generation, capturing 12% of the market. Otter.ai, specialising in transcription services, accounts for 5% of the total AI spending, closely followed by Fireflies.ai, which offers transcription, meeting summarisations, and vocal analysis to quantify meeting outcomes and sentiment. The remaining 17% of AI spending is distributed among approximately 80 different AI services.

The study also reveals that marketing departments are at the forefront of this AI spending surge, with almost half of the AI suppliers being utilised for content creation and production-related activities. This pattern illustrates an increasing recognition of the diverse applications of AI and reflects a broader trend of businesses pursuing innovative solutions to maintain competitiveness.

"Adopting AI can give employees a much-needed productivity boost, which unlocks a crucial competitive edge for businesses," remarked Brandon Till, Head of Business Solutions at Soldo. "However, as businesses continue to invest in AI tools, the productivity gains from the technology will soon become the norm, not a differentiator," he added.

Addressing the balance between control and flexibility in using AI tools, Till noted, "As businesses embrace AI, the key to effective utilisation will be finding the sweet spot between control and flexibility. Innovation is happening rapidly across the business spectrum, and employees must be empowered to explore and create more efficient working methods. They cannot afford delays caused by lengthy procurement processes."

Till also highlighted the crucial role finance teams play in this transition, stating, "Finance can ensure employees have access to the AI resources they need while closely monitoring spending to guarantee value for money. Additionally, finance teams often serve as the watchdogs for data compliance and must therefore lead the charge in responsibly empowering employees."

This latest research from Soldo underscores the rapidly evolving landscape of AI adoption within UK businesses, reflecting a growing strategic imperative to integrate advanced technologies in the pursuit of enhanced productivity and sustained competitiveness. As AI continues to embed itself into the operational fabric of businesses, the emphasis will shift towards maximising its potential while maintaining a vigilant approach to expenditure and data compliance.